Lock in for Best Interest Rates for your First Home

I'm re-posting this information from our Coldwell Banker Mortgage Broker - I tend to agree with her that interest rates are at their lows and will start to go up once the FED stops purchasing mortgage backed securities, possibly as early as this Spring.

Now is the time to buy in order to lock in the lowest rates.
Plus, you can take advantage of the First Time Home Buyer Tax Credit if you put a home under contract before April 30, 2010.

I can recommend Adrienne as a mortgage broker - she is very conscientious and can get you a pre-approval quickly and over the phone. Always get a pre-approval letter before you look to buy. My Team and I would love to help you with all of your Real Estate Needs throughout the Highland Lakes, Central Texas Hill Country and Greater Austin Areas.

Sue Ellett, Broker-Associate, Paragon Property Group - Coldwell Banker United, Realtors

I normally stick to the facts in the weekly newsletter but this week I’m going to give you my opinion at no extra charge.
Here’s what I know and believe…

• The 30 Year Fixed Mortgage Rates dropped this week to match a record low set in April.
• The 15 Year Fixed Mortgage Rates fell to a new all-time low.
• While FHA is still a solid 1/2% higher then it’s conventional counterpart it’s still a very low rate.
• The Fed has almost finished purchasing all the mortgage backed securities that they agreed to buy earlier in the year in order to subsidize mortgage rates
• Typically mortgage interest rates go against the stock market. A bad day on Wall Street is typically a good day for mortgage rates and visa versa.
• On March 2nd the DOW dropped to 6626 and Rates are around 5.125 and a point
• 4 months later on July 6th the DOW went up to 8146, a jump of 23% in 4 months, yet rates only moved up a π%
• 5 months later here we are with a DOW over 10,300, another jump of 27%, and rates moved DOWN to the lowest in recorded history?
  

I believe that the FED has been successful in artificially driving rates down but that’s about to come to an end.

My personal belief is that without federal intervention interest rates will begin their rise upward imminently. We have a tool that no one else in the market place has…Pre-Purchase Rate Protection.
If rates move even a 1/4 to 3/8 in the next 60 days customers, who are in rate protection will win big.

We’re the only game in town protecting customers while they look for a house!

Adrienne Austin
Senior Mortgage Advisor
Coldwell Banker Mortgage
Cell: 512/539-7721
http://adrienne.austin.coldwellbankermortgage.com <http://adrienne.austin.coldwellbankermortgage.com/>